Ford posted an earnings drop of 26% from the same quarter in 2023, totaling $2.8 billion, compared to the expected $3.7 billion. The high warranty expenses, particularly $2 billion for the recent quarter, significantly impacted investor confidence.
"Warranty has been a growing issue at Ford over the last five years and has escalated over the past year," highlighting the ongoing challenges the company faces that contributed to the disappointing results.
Ford's electric vehicle segment, Model e, suffered a loss of $1.1 billion, underscoring the struggles in the company's investment in this area compared to EV competitor Tesla, which managed a net income of $1.5 billion.
Despite some reasonable profits, Ford's overall financial performance was deemed 'awful,' leading to a significant stock drop, emphasizing the importance of consistent positive performance across all aspects of the company.
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